8 cities where home values are soaring the most in the US, including 5 with median prices still under $260,000 — and 5 where prices are plummeting the fastest
- Morningstar has just released its Q4 Markets Observer note. The firm highlighted cities with the highest and lowest home price increases and decreases.
- Cincinnati, Houston, and Philadelphia are among the fastest growing.
The housing market in the United States is currently divided.
Many high-flying markets that experienced massive relative appreciation during the pandemic are now cooling off significantly, while those that experienced more tepid gains are still chugging along.
Morningstar’s Q4 Markets Observer note, published this week, used National Association of Realtors data to highlight cities in the United States experiencing the highest appreciation as well as those experiencing the fastest price declines. From Q2 2022 to Q2 2023, they discovered that more affordable markets performed better.
“Housing price growth continues to be weakest in expensive metro areas (San Francisco, Los Angeles), along with those which saw a large speculative runup in prices over 2020-22 (Boise, Austin, Phoenix),” according to the report. “Cheaper metro areas are almost uniformly still seeing year-over-year price increases.”
From the report, we’ve listed the eight major cities in the United States where home prices increased by at least 5% between mid-2022 and mid-2023. There are also five cities where prices have dropped by at least 5%. Redfin data is also used to calculate median home prices in each market.
1. Cincinnati, Ohio
Home price appreciation year-over-year as of Q2 2023: 7.1%
Median home price: $250,000
Sources: Morningstar and Redfin
2. Miami, Florida
Home price appreciation year-over-year as of Q2 2023: 6.4%
Median home price: $575,000
Sources: Morningstar and Redfin
3. Houston, Texas
Home price appreciation year-over-year as of Q2 2023: 5.9%
Median home price: $325,000
Sources: Morningstar and Redfin
3. Kansas City, Missouri
Home price appreciation year-over-year as of Q2 2023: 5.9%
Median home price: $250,000
Sources: Morningstar and Redfin
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5. St. Louis, Missouri
Home price appreciation year-over-year as of Q2 2023: 5.6%
Median home price: $227,000
Sources: Morningstar and Redfin
6. Charlotte, North Carolina
Home price appreciation year-over-year as of Q2 2023: 5.1%
Median home price: $405,000
Sources: Morningstar and Redfin
7. Philadelphia, Pennsylvania
Home price appreciation year-over-year as of Q2 2023: 5%
Median home price: $255,000
Sources: Morningstar and Redfin
7. Cleveland, Ohio
Home price appreciation year-over-year as of Q2 2023: 5%
Median home price: $114,000
Sources: Morningstar and Redfin
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Cities Where Home Prices Are Falling Fastest 1. San Francisco, California
Home price appreciation year-over-year as of Q2 2023: -12.2%
Median home price: $1,330,000
Sources: Morningstar and Redfin
2. Austin, Texas
Home price appreciation year-over-year as of Q2 2023: -11.8%
Median home price: $548,000
Sources: Morningstar and Redfin
2. Boise, Idaho
Home price appreciation year-over-year as of Q2 2023: -9.5%
Median home price: $515,000
Sources: Morningstar and Redfin
3. Las Vegas, Nevada
Home price appreciation year-over-year as of Q2 2023: -6.5%
Median home price: $410,000
Sources: Morningstar and Redfin
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4. Phoenix, Arizona
Home price appreciation year-over-year as of Q2 2023: -6.3%
Median home price: $440,000
Sources: Morningstar and Redfin
5. Salt Lake City, Utah
Home price appreciation year-over-year as of Q2 2023: -5.9%
Median home price: $545,000
Sources: Morningstar and Redfin
